Business

50,000 seek loans via M-Shwari daily

Commercial Bank of Africa is processing about 50,000 loan applications daily through M-Shwari as Kenyans warm up to unsecured loans.

The bank, which launched the mobile banking service jointly with Safaricom two years ago, said it had disbursed Sh29 billion in loans. It lends from Sh100.

“Backed by a dynamic mobile phone-based credit scoring system, CBA has extended loans amounting to Sh29 billion, processing an average of 50,000 loans per day over the last two years without demanding security or the need for clients to visit a bank branch to apply for the loan,” CBA Group Chief Executive Officer Isaac Awuondo said in a statement yesterday.

M-Shwari deposits now stand at Sh153 billion.

M-Shwari’s success has turned around the fortunes of CBA, which has now emerged as the largest bank in Kenya by customer numbers.

The lender said it had hit 10 million customers this week, surpassing Equity Bank, which has a customer base of about nine million.

MERE NUMBERS

“This milestone goes beyond a mere number and two institutions. It shatters the myths about how to scale social innovation in banking to expand financial inclusion by offering a simple and affordable model to reach out to millions of Kenyans who want to save or borrow in a convenient, fast, reliable and affordable manner, to help them meet their daily needs” said Mr Awuondo.

Data released by the bank shows that 59 per cent of M-Shwari customers are male, while 41 per cent are female. “The highest usage is witnessed among the 24-35-year age group,” said Mr Awuondo. – DAILY NATION